Create your own Contract-Drafting process map online in minutes. Grow sales due to more time for lead generation and managing customer relationships. Negotiations should begin with trust and transparency to ensure that both parties have the best possible agreement. © Cinergix Pty Ltd (Australia) 2020 | All Rights Reserved, View and share this diagram and more in your device, Flowchart Template with Two Paths (One Decision), Basic Flowchart Template with one decision, Linear Process Template Using Flowchart Objects, Vertical Swimlane Flowchart Template with multiple ends, Logistic Managment System Flowchart Template, edit this template and create your own diagram. Identify the key data and deliverables for every contract you manage. Get up and running fast with streamlined implementation and solution building to address your immediate business needs. That’s why many organizations accept, trust, and rely on cloud-based applications and software. The draft should include all related documents needed to fulfill the contract, such as clauses, terms, and conditions. Contract Management Process Flowchart Template Edit this process map. The life cycle has three stages that encompass these actions: pre-award, award, and post-award. The familiar Smartsheet interface that is designed for how people actually work leads to rapid and broad adoption across your organization. Nov 9, 2017. The contract team includes end-user customers, and management uses metrics to make decisions about contracts and evaluate parts of the contract management process. Some problem areas may be too severe to solve with a contract amendment. Create contracts quickly and accurately, shortening your sales cycle, improving contract flexibility, and decreasing contract disputes. Establishing Governance and the Contract Management Team: Identify the structure, roles, and responsibilities of the team, as well as the resources needed for contract management and any training. Yes, I’d like to try Smartsheet for free. It stores them securely to protect against theft or cyber attack. Throughout the contract life cycle, you need to ensure you are following the contract’s aims and sections (also known as obligation management or commitment management), and be on the lookout for any signs of noncompliance, including quality issues. Finalize the changes, usually through a term sheet or letter of understanding (LOU) to make sure everyone approves of the terms and conditions before signing the final contract. You can’t know how well your process works without having clear goals and establishing key performance indicators (KPIs). In those cases, contract termination may be the best solution for poor vendor performance or other issues. At this stage, make sure that senior management supports the request and the partnership or agreement. Use a contract management process flowchart template to set up an efficient workflow of drafting contracts within your organization. Here is a list of typical changes: A contract manager uses their skills in change management and document management to identify these areas, manage the relationship between the parties, and capture the details of the changes to which both parties agree. Streamline contract management processes, giving management, stakeholders, and general counsel greater confidence. You may need to gather documents during the quote process or early sales cycle to ensure you have the context you need to generate the contract. Improves the process for generating, negotiating, signing, and renewing contracts, Increases revenue (and reduces expenses) because you can streamline contract creation and implementation processes, Creates strong relationships with your partners and vendors because you monitor contract performance and quickly identify problem areas, Promotes long-term profitability because you can renew more contracts with the partners who provide the best business opportunities, Ensures your suppliers are cooperative and respond to your organization’s needs, Supports strategic decision making because you can easily see the areas for growth, the partners and vendors that provide the best opportunities, and your organization’s ability to commit to additional work, Converts your strategy, partnerships, practices, policies, and capabilities into specific terms and conditions for any contract, providing deep insight into your business, Through a contract manager, advises C-suite stakeholders and executives on the effectiveness of the contract in implementing the organization’s goals, Supports commercial management because it ensures that you meet all your legal commitments once you’ve entered into a contract, Helps you assess, monitor, and mitigate financial, legal, and procurement risks, Creates standard processes for routine contracts and business, freeing time to address new business prospects and unique or infrequent processes or implementations. Instantly Download Contract Management Flowchart Template, Sample & Example in Microsoft Word (DOC), Apple Pages, Google Docs, PDF Format. Favorable discussions or quotes with a potential business partner or vendor trigger the request for a legal contract. Smartsheet is an enterprise work execution platform that is fundamentally changing the way businesses and teams work. Use their expertise to establish legal playbooks that you can use during negotiations. Identify which departments or areas need to review contracts. At the end of the agreement, you have the opportunity to consider extending the business relationship and renewing the contract. Whether you use a manual workflow for approvals or an automated system that routes the contract and sends alerts, you must still oversee the process, so the contract can be completed and you can close the transaction. Supports over 40+ diagram types and has 1000’s of professionally drawn templates. Creating a flowchart with an existing template will be fast and efficient. Here we offer a contract management flowchart template for free download. In some organizations, lawyers work behind the scenes to draft, finalize, and monitor contracts. Templates provide quality contracts that require less review from legal. Contract data cuts down on the negotiation process when initial quotes reflect the customer’s needs and previous business dealings. Identify, define, and outline the terms to mitigate risk. At the same time, train key staff members in the process, so they know how to do the following: gather needs and requirements; use the best templates to draft approved contract language; follow guidelines for negotiating; and oversee contract management. The best-in-class companies have more than 75 percent of their contracts in a searchable repository, enabling them to gain greater insight into contract performance, mitigate risk, and improve their contract renewal rates. Use these best practices to get the most from every contract and improve your contract management. The CMF has four main components that cover a range of activities. The National Contract Management Association (NCMA) defines contract management as “the process of managing contracts, deliverables, deadlines, and contract terms and conditions while ensuring customer satisfaction.” It involves many areas of the organization to ensure that you not only meet your operational, functional, and business objectives, but that you profit from every interaction and deliver cost-effective approaches.